Utica, N.Y. — The City of Utica is grappling with the possibility of a 17.5% property tax increase for the fiscal year 2025. Mayor Mike Galime has taken the bold step of requesting the council to waive the state-mandated 2% property tax cap. As the city navigates these financial waters, two distinct scenarios have emerged in Mayor Galime’s preliminary budget proposal to the City’s Board of Estimate and Apportionment.
- Scenario 1: The Struggle for Balance
- Currently, two figures dominate the discussion: 15% and 17.5%. Mayor Galime emphasizes that the city is meticulously assessing its reserves to find an optimal balance. The challenge lies in maintaining essential services while addressing the budget deficit. After years of either no tax increase or even negative adjustments, Utica now faces the tough reality of balancing the budget through a combination of fund balance utilization, a tax increase, and, regrettably, some borrowing.
- Scenario 2: The Impact on Residents
- The proposed increase has sent shockwaves through the seasoned councilmembers. “We’ve never started at 17.5%,” says Councilmember-at-Large Jack LoMedico. Typically, they begin discussions around 8% or 9%. The magnitude of this proposal is unprecedented. Concerns arise for residents who are already stretched thin financially. Some may struggle to meet their mortgage payments.
- For households in Utica, the impact varies. Mayor Galime explains, “For my household, it could mean an additional $600 for the entire year.” However, the range extends from $100 for some households to potentially higher amounts. Despite the hardship, Mayor Galime acknowledges that this step is unfortunately necessary to maintain essential services.
- The Tough Choices: Layoffs and Budget Balancing
- One critical decision that the proposed tax hike might prevent is layoffs. Mayor Galime is committed to presenting a balanced budget to the Board of Estimate and Apportionment. His goal is to safeguard public safety staff and all employees. The delicate dance between fiscal responsibility and maintaining vital services hangs in the balance.
- On Tuesday, Feb. 13, Mayor Galime will deliver the official budget presentation. He will provide detailed figures and reasons behind the proposed tax increase. If the Board of Estimate and Apportionment approves the budget, it will then proceed to the Common Council, which has until March 20 to make any necessary adjustments or give the green light.
In this high-stakes financial chess game, Utica faces tough choices, but Mayor Galime remains resolute in his commitment to the city’s well-being.
Please note that these scenarios are based on the available information, and the final outcome will depend on various factors and decisions made by the relevant authorities. Let us know your feelings about this bold choice by the Mayor. Contact Us Here
David LaGuerre
